In 2010, the Securities and Exchange Commission (SEC)sent a letter to the Nigerian Stock Exchange now Nigerian Exchange (NGX) for the approval of the commencement of the new Alternative Securities Market (ASeM).
It was the third market classification to be introduced to be capital market by The Exchange.
Small and Medium Scale Enterprises played a huge role in the growth of Nigeria’s economy. As such, there is also a platform for them, just like the bigger issuers, to raise capital.
So…
What is ASeM?
Alternative Securities Market is a security market classification that is specially created for the emerging businesses that are promising with high potential for growth but can’t meet the requirements set for bigger firms.
The market is a specialised board on the NGX for the purpose of small to mid-sized companies to can access the capital market under less stringent rules and requirements to raise long term, low-cost capital.
ASeM was officially launched on Wednesday, Thursday, April 25, 2013, by the Nigerian Exchange (NGX).
List of Companies on ASeM of NGX
At the time of compiling this list, there are three companies on the Alternative Securities Market, they are:
| S/N | Company | Sector | Symbol |
| 1 | Capital Oil PLC [MRF] | Oil And Gas | CAPOIL |
| 2 | Juli PLC. | Services | JULI |
| 3 | Rak Unity Pet. Comp. PLC. [MRF] | Oil And Gas | RAKUNITY |
| 4 | Smart Products Nigeria PLC [MRF] | Construction/Real Estate | SMURFIT |
Reasons for Creation of ASem
1) To allow smaller firms to float shares with a more flexible regulatory system than is applicable to the bigger companies
2) To enable the smaller companies to take full advantage of listings.
3) To enable indigenous companies, who could not meet all listing requirements, to take advantage of the capital market.
4) To provide a platform for sustainable growth and development of promising small companies.
5) It is a platform for smaller and reliable businesses to raise new capital for expansion
Is it safe to buy stocks from ASeM Listing?
Yes. Because any company that made it to the ASeM listing must have met the minimum required standard set by the Nigerian Exchange.
The smaller firms may not pull a huge market cap like their bigger brothers on the premium board listing, still, they are safe. However, as an investor, you may want to use the Year-To-Date performance of the smaller issuer as a factor.
Apart from this, there are designated advisers who provide professional resources for the companies.
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- By Pixabay